Monthly Income Goal
“Many people take no care of their money till they come nearly to the end of it,
and others do just the same with their time.”
~ Johann Wolfgang von Goethe
So now that you have your Break Even amount, you know the minimum amount of income you need to make in order to not lose money monthly. But you don’t want to just net zero, you want to thrive in your practice!
The formula for determining your Monthly Income Goal is:
Break Even + Business Savings + Personal Savings + Retirement Savings + Vacation Pay + Profit + $500 = Monthly Income Goal
You may have other things you want to allocate money towards in an average month. Tailor the formula to suit your needs.
Your Monthly Income Goal is the amount that you are striving towards, but don’t worry if you aren’t making this number immediately. It will give you something to aim for and help you when you make your other business decisions. Again the extra $500 is to provide a buffer. Always aim higher to account for the slow months and to help cover the taxes.
Action Item: Determine your Monthly Income Goal.